Most Helocs carry a higher rate and over a shorter term where as a Mortgage offers a lower rate over 30 years for the lowest payment.You might have a low first rate and not want to refinance but trust me the blended rate between a low first mortgage and a High rate Heloc tends to have a higher payment.

Hello, I am selling a property and it has appraised lower than the contacted price by $9,000. 

Your credit score (672) is a bit on the lower side, which may also be contributing to the higher interest rate and cost.Have you looked into working with private lenders or small local portfolio lenders?

So I figured that if I could avoid negative cash flow, the other two sources would carry us until rates declined and we could refinance to lower interest expenses.

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

In other words, you would get the same rate at 60% LTV that you would at 50% or lower.

If you take the lower value areas the only reason people choose to live there is the affordability really.

I was initially looking for a turnkey property but after finding this deal and going down the rabbit hole it has turned into a BRRRR.Property is well priced and seller agreed to lower price after inspection was done and scope of work completed by GC.

I agreed to take out an under ground storage tank in exchange for a lower price.

Considering the high rates at this time and opportunity to lock in tax free capital gains of 500k, suggest you sell and lower mortgage on your new home